How are the two different approaches to GDP equal?

Re: How are the two different approaches to GDP equal?

by Danny Weaver -
Number of replies: 0
If the money is saved in a bank or invested, it is loaned out then spent - tracked in the GDP figures.

If the money is saved in a mattress, this would effectively decrease the money supply, lowering the price level (if people did this en masse) where producers would eventually renegotiate prices at this lower price level and push the GDP back out to the long run.
Accessibility

Background Colour Background Colour

Font Face Font Face

Font Kerning Font Kerning

Font Size Font Size

1

Image Visibility Image Visibility

Letter Spacing Letter Spacing

0

Line Height Line Height

1.2

Link Highlight Link Highlight

Text Colour Text Colour